17th Dec 2021 11:10
(Alliance News) - Trident Royalties PLC said on Friday it has signed a USD40 million secured loan facility agreement with Macquarie Bank Ltd.
The London-based mining royalty and streaming company said that the facility will be used to retire its existing USD10 million secured loan facility provided by a syndicate managed by Tribeca Investment Partners.
Trident will pay a coupon of 7.8% plus compounded secured overnight financing rate, with interest payable quarterly. Regular quarterly repayments of USD2.5 million will commence on June 30, 2023 with a final bullet payment on maturity.
In addition, by January 31, the company will grant warrants to subscribe for 14.8 million Trident shares to the lenders at 51 pence per share. The stock was down 1.1% at 36.10 pence on Friday morning in London, meaning the exercise price is at a 41% premium.
Exercise in full of the warrants will bring USD10 million of cash into the company which Trident said can be used to part fund repayment of the loan.
Chief Executive Adam Davidson said this was an important step to closing the recently announced acquisition of gold off-take streams from funds managed by investment management firm Orion Resource Partners.
By Heather Rydings; [email protected]
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